Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nina Company has provided the following information: Direct material $20.00 Direct labor $17.00 Variable manufacturing overhead $15.00 Fixed manufacturing overhead $10.00 Variable administrative expense $5.00

Nina Company has provided the following information:

Direct material

$20.00

Direct labor

$17.00

Variable manufacturing overhead

$15.00

Fixed manufacturing overhead

$10.00

Variable administrative expense

$5.00

Fixed administrative expense

$2.00

Nina normally produces 8,000 units and sells these units at $100 per unit. A national discount box store has contacted the company about ordering 1,000 units that would be manufactured in a slightly different way and would save the company $3.00 per unit in direct materials. Nina has excess capacity and this order would not affect normal production The special order would not change Nina's fixed costs. The special order would have a unit price of $70.

The special order would increase (decrease) Nina's net operating income by _______.

You must format you answer as follows: $x,xxx (for an increase in net operating income)

$(x,xxx) (for a decrease in net operating income)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Business Discover Types Of Audits Balance Sheets And Assertions

Authors: Carleen Legalley

1st Edition

B0B5KVD4FZ, 979-8839194779

More Books

Students also viewed these Accounting questions

Question

At what level(s) was this OD intervention scoped?

Answered: 1 week ago